Assaf, S; Srour, O and Hassanain, M A (2013) Causes of failure of small contractors in Saudi Arabia. International Journal of Construction Management, 13(4), pp. 1-10. ISSN 1562-3599
Abstract
The construction industry in Saudi Arabia is currently flourishing due to increased earned revenues from the oil industry. Small contractors are finding more opportunities for business. The objective of this paper is to understand the reasons behind failure of small contractors and identify the most important factors contributing to their failure. A questionnaire survey was developed and distributed among 43 small contractors for obtaining their feedback and to assess the most critical reasons behind failure of small contractors in the Saudi market. The research concluded that the most crucial causes of small contractors' failure are management incompetence, poor accounting systems and records, difficulties in attracting good personnel, dependency on a very limited customer base and lack of effective business plans. Based on the results of the study and the severity of the causes of failure, a series of recommendations were developed that could lessen the failure of small contractors.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | contractor failure; Saudi Arabia; small business; small contractor |
| Index terms: | Saudi Arabia, construction industry, revenue, survey, personnel, accounting, small business, questionnaire |
| Subjects: | data collection methods, organization, economic analysis, Geography, management, industry analysis |
| Topics: | Human Resources, Geographical Context, Research Practice, Business Strategy |
| Descriptive scope: | 5 PCTEA |
N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here